In historic shift, Taiwan firms return home from mainland
Over the last 30 years, Taiwan firms have invested nearly US$200 billion in the mainland, making them one of the largest outside investors, and played an important role in the China export miracle.
But now history is going in reverse. Since 2016, new Taiwan investment in the mainland has declined. Last year this investment was half of what it was in 2019. Since 2017, Taiwan firms have been remitting more money home than they send to the mainland.
Several factors are driving this migration. Most important is the Sino-US trade war which will likely continue during the Biden administration that takes office this week. U.S. companies want goods, parts and components not made in the mainland. ...